So that Chinese can deeply benefit in India

This is a report from this week’s newsletter “India” CNBC that brings you timely, discerning news and comments on the market at a new power plant and large companies behind your meteoric climb. As you see? You can subscribe here.

Chinese Deepseek has published its model for free for commercial use and also public knowledge of technology public To build such a model from scratch. The company said it only spent $ 6 million in the cost of AI chips to develop models.

Though some have Raised questions about the exact figureIt is compared to hundreds of millions – and sometimes billions of dollars – consumed by US technological companies.

Development could mark the beginning of the development of AI models in India, as previous methods for training large language models required thousands of energy intense and expensive AI chips.

This could also mark the main turning point for Indian technological companies like Infosyswho had previously had to rely on AI models created by US technological companies like TargetWith llam.

Keshav Murugesh, Executive Director of Business Management Company WNSsaid Deepseek’s AI model “Central Progress” for Indian Technology Companies.

He suggested that low development costs allow new AI models to be trained in Indian regional languages ​​and allow cases of use previously considered inexomical. The vast majority of sophisticated major languages ​​today, such as Openai’s O1 and Anthrop’s Claude Sonnet 3.5, can only be made in a handful of languages.

“Using innovation behind Deepsek, these companies can significantly reduce the costs and accelerate their time on the market,” Murugesh told CNBC. WNSwhich was listed on the NYSE, discovered in its invitation in the third quarter earlier this month, that it will soon allow generative cases of use of AI AI in the US insurance company, a Top 10 client for the company.

Industrial polls have shown that the privacy of data and the high cost of implementing large linguistic models is among the reasons why companies have resisted the adoption of AI. The advantages of Deepseek-R1, if confirmed, would quickly eliminate the two of the 10 best worries and could start solving many others.

The Indian Government also embarked on subsidizing access to AI chips, known as graphics units for processing, so that academics and beginners in the country could start developing AI models.

Indian IT services companies could also benefit from deeksek in more indirect ways. Analysts expect large clients of IT companies to divert budgets from AI expenses to another IT consumption.

“Deepseek is positive for Indian IT services, in our opinion,” said UBS Equity analysts led by Shaleen Kumar in clients. “Although it is still too early to fully assess the impact, the faster development of AI, which includes lower costs, should help release the IT budget, resulting in increased consumption in other areas.”

However, this may not be all good news. Analysts from India based in India Anand Rathi say domestic companies with a “heavy exposure” giants to calculate in a cloud like Microsoft,, Amazon,, Google and Prophet “It can face short -term winds,” while Nimbler companies show them, turning to Deepseek’s low -budget AI models.

Bank of America analysts also warned that a lower obstacle to entering the service provider increases competition in the sector, although these risks are currently in “very preliminary stages”.

And so – in this globalized and connected world – a breakthrough in China can benefit from the rival of India. However, Deepseek R1 can turn into a double blade sword long before many expect.

AT&TA large US telecommunication operator with more than 150 million subscribers has reduced the number of calls for user support he receives by 30% in one year, thanks to AI. The company also achieved effectiveness in the development of software.

“We are currently spending less to develop a new code internally and get more,” said John Stankey, AT&T CEO in an invitation with analysts. “And this is through the application of AI and technology and what we are able to do with generative AI.”

Although expensive to implement using AI models of developed US, it is cheaper compared to high American salaries.

Given the growing worries about unemploymentThe Indian government will hope for cheaper AI models do not eventually dispute the low -budget jobs.

– CNBC -Michael Bloom contributed to reporting. In case you are wondering, Deepseek-R1 is not.

Reduction of deficit or increase consumption? The Indian Finance Minister is facing a difficult choice in making an annual budgetwhich should be presented on February 1. Lim Hui jie jie and Anniek Bao report on the challenges for Nirmal Sitharaman, because the budget comes against the background of growth of growth in the fifth largest economy, weak domestic demand, and amortizing the hole and growing global uncertainty.

Foreign investors run in the Indian Stock Exchange. However, analysts say it is a “healthy correction”. Index Indexes of stock NIFTY 50 And Sensex has been floating for more than seven months, firmly on a correction territory since September. Some points to Exalted Assessments, Others say Booking Profit as reasons behind the slide.

India is a “complex” machine. ” The interest of investors in India reduced it at the end of 2024 due to the withdrawal of Indian shares during this period. One portfolio manager, however, remains a bull in the country. The market is an opportunity to buy, he says, and Names three Indian supplies to buy for 2025. [For subscribers only]

Indian supplies show some signs of recovery after an extended decline. AND NIFTY 50 The index increased by 0.7%this year. However, the reference value is 1.7%lower this year.

The reference 10-year-old Indian government bond yield dropped to 6.67% with global peers this week.

On CNBC TV this week, Neelkantth Mishra, Chief Economist Axis Bank, said Indian Rupee was “unexplained” stable over the past two years due to the India’s spare bank policy. Mishra suggested that Rupopi has lasted longer than necessary and resulted in the weakening of the currency at the lowest levels over the US dollar.

Meanwhile, emerging markets that serve as ‘bridges’ to trade with China Hit ‘pretty hard’ US President Donald TrumpAccording to the Fergus Argyle portfolio manager of EFG New Capital. Argyle also explains why his emerging market does not invest in China and Vietnam. He says he prefers markets such as Mexico and India, as a form of his China plus one strategy.